Stronger oil prices and the next month’s FTSE Russell upgrade to emerging markets led Qatar Stock Exchange gain 365 points and capitalisation add QR19bn, making it the best performer among the Gulf bourses during the week.

Investors’ penchant for blue-chips gave more than required thrust to the local bourse, whose year-to-date returns came third among the Gulf bourses.

A stronger rally in the insurance, telecom, banking and transport stocks lifted the bourse 3.33% during the week, which otherwise saw Saudi Arabia tank 1.56%, Bahrain (0.65%), Kuwait (0.51%), Abu Dhabi (0.19%) and Muscat (0.04%); while Dubai rose 1.36%.

“Excessive speculation over selective stocks on their possible entry into FTSE index geared the market, which largely remained positive on rebounds in the oil front,” an analyst with a local brokerage house said.

It (the FTSE Russell upgrade) could provoke knee-jerk reaction, as had been the instances when MSCI and Standard and Poor’s Dow Jones did so in the past, he said, adding the quantum of funds inflow would rather depend on the international developments.

The Qatari bourse has gained 8.54% year-to-date compared to 13.37% in Dubai, 9.03% in Muscat and 4.9% in Abu Dhabi; whereas Saudi Arabia fell 9.91%, Bahrain (5.5%) and Kuwait (2.55%).

Large cap equities were increasingly sought after during the week, which saw QSE listed companies report QR22bn in net profit in the first six months of this year.

Foreign institutions’ robust buying interests largely swayed the market during the week which saw higher trading turnover and volumes.

Opening the week stronger at 11,054 points, the market kept gaining for the next three days with the sharpest one-day gaining on Tuesday, mainly on reports that FTSE Russell may relax criteria on individual local stocks to be included in its index. Thereafter the accretion was slower but took the index above 11,400 points but profit booking on the last day led it to retreat and settle at 11,320 points.

The 20-stock Total Return Index gained 3.33%, All Share Index (comprising wider constituents) by 2.88% and Al Rayan Islamic Index 1.15% during the week which saw global credit rating agency Moody's affirm Ooredoo's 'A2' long-term issuer rating reflecting improvements in its earnings before interest taxes depreciation and amortisation margins following its rationalisation strategy.

Insurance stocks surged 9.66%, telecom (7.38%), banks and financial services (4.01%), transport (3.33%), industrials (2.56%) and consumer goods (0.43%); while realty fell 1.98% during the week which saw banking, real estate and industrial stocks together constitute about 71% of total volumes.

Market capitalisation expanded 3.24% to QR605.35bn as large, small, mid and microcap equities appreciated 4.5%, 1.72%, 1.06% and 0.59% respectively during the week which saw Ezdan and Masraf Al Rayan dominate the trading ring in terms of volume and value.

Large, micro and midcap stocks have gained year-to-date 8.95%, 6.43% and 2.34% respectively; while small caps fell 0.98%.

Of the 44 stocks, as many as 25 gained, while 18 declined and one was unchanged during the week.

Seven of the 13 banks and financial services; five of the nine industrials; four of the five insurers; three of the eight consumer goods; and two each of the four real estate, three transport and two telecom stocks closed higher during the week.

About 57% of the scrips extended gains with major movers being Qatar Insurance, Ooredoo, Industries Qatar, Aamal Company, QIIB, Commercial Bank, Doha Bank, Masraf Al Rayan, Alijarah Holding, Mazaya Qatar, Milaha, Nakilat and Widam Food; even as Ezdan, Mannai Corporation, Qatari Investors Group, al khaliji and Salam International Investment bucked the trend during the week.

Foreign institutions’ net buying soared to QR629.96mn against QR355.87mn the week ended August 11.

Non-Qatari individual investors’ net selling weakened to QR70.66mn compared to QR73.88mn the previous week.

However, domestic institutions’ net profit booking surged to QR319.14mn against QR137.9mn the week ended August 11.

Local retail investors’ net selling increased to QR240.16mn compared to QR144.28mn the previous week.

Total volume rose 2% to 50mn shares, valued by 10% QR2.13bn and transactions by 11% to 28,360 during the week.

The insurance sector’s trade volume more than tripled to 1.66mn equities and value more than quadrupled to QR132.58mn on more than doubled deals to 1,444.

The transport sector reported 23% surge in trade volume to 3.42mn stocks, 39% in value to QR145.44mn and 32% in transactions to 2,101.

The banks and financial services sector’s trade volume increased 11% 14.99mn shares, value by 35% to QR826.81mn and deals by 8% to 8,549.

There was 1% jump in the consumer goods sector’s trade volume to 2.83mn equities, 9% in value to QR158.7mn and 9% in transactions to 2,295.

However, the telecom sector’s trade volume plummeted 24% to 6.84mn stocks, value by 16% to QR211.05mn and deals by 1% to 3,543.

The real estate sector saw 1% decline in trade volume to 11.17mn shares, 5% in value to QR230.6mn and 4% in transactions to 3,943.

The industrials sector’s trade volume was down 1% to 9.09mn and value by 21% to QR429.57mn; while deals expanded 14% to 6,485.

In the debt market, there was no trading of treasury bills and government bonds during the week.